CD Projekt's Licensing Engine Fires Up as the Witcher Saga Resets
New IP revenue line and a packed 2026-2028 release slate mark a strategic inflection, even as one incentive tranche disappoints.
OTGLY · Earnings Call · 2026-09-02
H1 2026: Licensing Lifts the Top Line
CD Projekt delivered a strong first half, with sales up 23% y/y to PLN 435 million and net profit climbing 37% to PLN 249 million. The growth was broad-based, but the standout was a brand-new revenue line: IP licensing. CFO Piotr Nielubowicz highlighted, “what really made a difference in the first 6 months of 2026 compared to a year ago were revenues from IP licensing, a new line in our presentation and report” — Piotr Nielubowicz, Chief Financial Officer · 2026-09-02. That line alone contributed PLN 95 million, including partnerships like the Cyberpunk trading card game and Wuthering Waves. It's a clear signal that licensing revenue is becoming a meaningful, recurring stream.The Witcher Engine Rolls On
On the product front, the company is executing a multiyear release plan across its two core universes. Cyberpunk 2077 has now sold over 14 million copies, and Phantom Liberty topped 15 million. Meanwhile, The Witcher 3 has surpassed 65 million units, bringing the franchise total to over 90 million. The next 12 months will be pivotal: the Witcher 3 Remastered (including a Switch 2 version) launches September 29, 2026; Songs of the Past, a full expansion comparable to Blood and Wine, follows in 2027; and Witcher 4 is targeting 2028. Management is candid that this is not the full slate, and the development investment reflects the ambition—capitalized development expenditures hit PLN 1.5 billion, with PLN 385 million spent in H1 alone. As joint CEO Michal Nowakowski put it, “both our franchises are stronger than ever, and we are ushering in the next chapter in the growth” — Michal Nowakowski, Joint Chief Executive Officer · 2026-09-02. Gamescom has already provided a tangible proof point: the Songs of the Past demo drew nearly 9,000 players and generated 26 million views across the company's own channels, and the game amassed 900,000 wishlists within a week. The Cyberpunk trading card game raised $28 million on Kickstarter, further monetizing the IP. This ecosystem approach is deliberate—management notes over 100 licensing partners in H1, including unannounced initiatives. This is not just a one-off; the company is reinvesting into both universes, with a development team that has grown to 1,045 people. The Cyberpunk 2 team alone expanded to 184 developers in the last quarter, while the Witcher 4 team remains the largest at 519.Incentive Program Reality Check
The release schedule also explains a notable accounting adjustment. The company's incentive program B has a first tranche (FY2023-26) that is 86% complete, but the second tranche (FY2024-27), requiring PLN 3 billion cumulative net profit, is now expected to be missed. As CFO Nielubowicz explained,The company reversed PLN 11 million of previously recognized noncash costs, but the change is more about timing than a fundamental earnings issue. Still, it highlights the concentration of earnings in the back half of the decade.Taking into account the company's current release schedule, the group will most likely not meet the performance conditions set for the second stage of incentive program B for the years 2024, 2027, which was set at PLN 3 billion. Consequently, 70% of the entitlements granted to participants under this tranche will most likely not vest.